TMI Blog2016 (7) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... traction. The very fact that they kept quiet for almost 2-3 months after recording the statement proves beyond doubt that the statement was not recorded by using any force by the search party. Therefore, the affidavit filed by and Shri Chimanlal Shah was an afterthought and it was simply advice to frustrate the efforts of the Department to sniff off the unaccounted income of the assessee Whether evidence found as a result of search or other such materials or information is sufficient enough to conclude that there was concealment of income? - Held that:- When in respect of previous Assessment Year 2004-05 also the Tribunal had dismissed the HC-NIC Department’s appeal on the ground that the addition in that year also was based on extrapola ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent-assessee is engaged in the business of real estate and developed the projects during the financial years 1997-98 to 2003-04. On 18.06.2003, a search operation u/s. 132 of the Income Tax Act was carried out at the office premises of the assessee firm and residential premises of Shri Bimal Chimanlal Shah, one of the partners. During such search, several incriminating documents were recovered. The investigation led to a prima facie revelation that the assessee had received onmoney @ ₹ 180 per sq.ft Accordingly, the Assessing Officer while passing order on 28.03.2006 had worked out the amount of on-money and made the addition in respect of all the assessment years effected by sale of flats above projects. 3. This order of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making an affidavit which was filed in this office after about two to three months. The statements under section 132(4) of the Act were recorded on 18.06.2003 and 01.08.2003 where as the affidavit for retraction by Shri Chimanlal Shah was filed in this office on 26.09.2003. If the statement of Shri Chimanlal Shah was recorded by using duress, intimidation or coercion, they would have immediately on the same day or on the following day filed the retraction. The very fact that they kept quiet for almost 2-3 months after recording the statement proves beyond doubt that the statement was not recorded by using any force by the search party. Therefore, the affidavit filed by and Shri Chimanlal Shah was an afterthought and it was simply advice to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he flat in respect of which the evidence of On-money was found at the time of search. The said decision dated 31.03.2011 of ITAT, Ahmedabad was relied on, on behalf of the assessee. 5.1 Even as for the year 2004-05 also, the addition on account of Onmoney was held to be on the basis of guess work and extrapolation, again in the next year 2005-06 being year under consideration the addition of ₹ 1,52,53,128/- was made repeating the same story. When in respect of previous Assessment Year 2004-05 also the Tribunal had dismissed the HC-NIC Department s appeal on the ground that the addition in that year also was based on extrapolation, it emerged beyond pale of doubt that for the addition made for the year 2005-06 there was no evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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